5 Most Commonly Used Terms In Car insurance

Buying car insurance isn’t a challenging task. Instead, all you need to do is some research and a little bit of consultation with someone expert in this field. But, just like every theory, policy, law, etc., has various terms in it, so does this motor insurance. Though you might have acquired enough knowledge about this insurance, your efforts are left in vain if you do not know some most commonly used terms.

To let your efforts not waste due to incomplete knowledge, here is a small collection of the terms commonly used by insurance companies.

Some most commonly used terms and their meaning

1.Personal Accident Cover

This cover that an insurance company provides protects you from mishappenings that cause physical harm, deaths, or disability that occurred on roads. But, every insurance company does not provide you with this cover. Hence, you should always read the terms and conditions of the company before obtaining such car insurance.

2.Third-party Cover

From the name itself, you can understand that this cover is related to a third party. Protection against any expenses because of death, accidents, or damage to third-party’s property falls under this cover. In this, the third party whose property has been affected can file a third-party cover claim, and then the insurer of the vehicle’s owner will pay for the claim.

3.NCB (write full form)

NCB, or No Claim Bonus, in simple words, refers to the discount that you can avail of after one year of insurance. But, this discount is available for you only when you haven’t made any claim in the previous year. As a result, you get some discount on the cost of premiums during the renewing process. The best thing about NCB is that you can shift this bonus from one insurance company to another. But, keep in mind that the policy should have been renewed within 90 days from the date of expiry to do the same.

4.Zero Depreciation Cover

This cover waives off the depreciation on replaced parts of the vehicle when you opt for Zero Depreciation Cover. Hence, you get better claim amounts.

5.Insured Declared Value

IDV, or Insured Declared Value, refers to the market value of your vehicle at present. It is the maximum amount that your insurer will pay you for vehicle insurance. You can claim this after your car gets damaged, lost, or stolen.

This was all about the most commonly used terms in insurance. For better insurance policies and offers, you can visit Vision Insurance, an Oman car insurance company.

Conclusion

Insuring your vehicle is essential these days. When you do so, you save a lot of money when you have to pay for any medical expenses or other stuff related to your vehicle. It is always a good idea to look into the company’s policy and go for a better cover. In some countries, it is a must to insure your car. For instance, car insurance in Oman is compulsory for everyone. You can obtain a good insurance policy for your vehicle at Vision Insurance, an insurance company in Oman.